Fear Index Plummets Following Israel-Iran Truce
(MENAFN) The VIX volatility index, often dubbed the "fear index," plunged 8.72% on Tuesday following US President Donald Trump’s announcement of a ceasefire between Israel and Iran.
Trump outlined a phased halt to hostilities, with Iran initiating the ceasefire first and Israel following 12 hours later, leading to a full cessation of conflict by the 24th hour.
The VIX had previously retreated from record highs after tensions eased due to shifts in US tariff policies. The index hit a peak of 52 in April but was trading at 18.10 as of 1430 GMT on Tuesday.
However, Iranian Foreign Minister Abbas Araghchi contested the announcement, stating there was no formal agreement on a ceasefire or suspension of military actions. He clarified that if Israel halts what he termed illegal aggression against Iran, they do not plan to continue their military response.
Despite the absence of an official statement from Tehran, President Trump confirmed the ceasefire was in effect and urged that it be respected.
The announcement boosted global risk appetite, triggering a notable rally across equity markets.
Brent crude oil prices dropped sharply, falling 8.5% on Monday to $69.50 per barrel, and declining a further 3.8% to $66.70 by 1430 GMT Tuesday.
Gold prices also declined, slipping about 2% today to reach a two-week low of $3,295.60 per ounce.
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